- Wednesday, October 16, 2024
UK defense-and-aerospace group, BAE Systems, has announced a rise in first-half pretax profit, driven by a surge in record order books as governments increase spending on defense. The company has subsequently raised its full-year forecast, with sales guidance now expected to increase by 200 basis points to 5% to 7%, up from the previous guidance of 3% to 5%. Additionally, underlying earnings before interest and taxes are projected to rise by 6% to 8%, compared to the previous range of 4% to 6%. Furthermore, underlying earnings per share guidance has been revised upward by 500 bps to 10% to 12%, from a prior range of 5% to 7%.
During the first half of the year, BAE Systems' order intake reached £21.1 billion ($26.96 billion), surpassing the £18 billion recorded last year. This notable increase has resulted in a substantial record order backlog of £66.2 billion.
The company's half-year pretax profit amounted to £1.2 billion, compared with £779 million during the same period in 2022. Meanwhile, underlying earnings per share, which excludes exceptional and other one-off items, rose to 29.6 pence per share from 24.5 pence per share in the previous year. The consensus for the company-compiled underlying EPS ranged between 24.3 pence and 27.3 pence.
BAE Systems, known for its production of military hardware and software primarily in the US and UK, reported a total revenue of £11 billion for the period, up from £9.74 billion the previous year. This aligns with the company-compiled consensus of between £11 billion and £11.39 billion.
Additionally, BAE Systems has announced a new share buyback program of up to £1.5 billion.
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